Westmount Capital has brought , for the first time, to Milano, Imperial Mining, ( as from February 6th, Scandium Canada) a Canadian-based exploration and development company focused on advancing its flagship Crater Lake scandium and rare earth project in Québec.
Imperial is publicly listed on the TSX Venture Exchange as “IPG” and on the OTCQB Exchange as “IMPNF” and is led by an experienced team of mineral development professionals.
The presentation was held at the bautiful and cozy milaneese restaurant “El Boeucc ” and made by the Chief Executive Officer: Guy Bourassa.
Mr. Guy Bourassa is an experienced Mining Executive with deep networks in Quebec and around the world. He was the Founder, Director and acted as President and CEO of Nemaska Lithium Inc. from January 2008 to February 2020.
Over the past 30 years, he has held the roles of President, CEO and Director in numerous Québec-based junior mining companies. He has a great depth of experience and knowledge of the critical metals space.
Imperial Mining (“IPG”) is aiming in particular on the development of its scandium-rare earth property in Quebec.
Based on the Company’s exploration to date, a preliminary economic assessment was tabled, showing an NPV of approximately $1.7 billion (after tax). With indications that adjacent mineralized zones yet to be explored, could contain additional high-grade scandium resources. The Company anticipates further increase to the project’s value proposition.
To capture more margin, the Company is expanding its efforts along the value chain. IPG has developed a proprietary processing technology which will enable the Company to produce scandium alloys, significantly increasing pricing and margins.
Industry = Supply Constrained
Commercial scandium is rare. Global production stands at around 30-35 tonnes per annum (tpa), whereas market insiders forecast demand to grow close to 2,000 tpa by 2040.
Mining capacity will have to increase significantly to meet this demand. With the current scandium supply being dominated by jurisdictions not necessarily friendly to North America, and considering its status as a critical mineral, it is key that new capacity is developed in North America.
IPG is developing its Crater Lake property in Quebec, where the Company owns 97 mining claims covering 4,705 hectres.
The property benefits from several characteristics that make it very attractive:
Large surface scandium resource inventory Near Quebec’s aluminum metal production/value-added products.
Good road, rail, air and hydroelectric capacity supported by the Plan Nord infrastructure program.
Competition
As discussed, there is an urgent need for more scandium production. With the market being supply restricted, competitive forces are limited.
The un- fragmented nature of the industry further increases the attractiveness of the sector.
Valuation
To date, IPG has been flying below the radar.
The Company is now embarking on a communications program to raise awareness and bring its valuation more in line with that of its peers. The prospects for the industry, limited competitive pressure and a drilling program that has already resulted in a PEA of around $1.7 billion, it is clear that the current valuation provides a very compelling entry point.
Opportunity
Pure Scandium metal: ~$14,000/kg
Scandium oxide: ~$2,000-$2,500/kg
Due to its scarceness, scandium is a high value product:
Applying current pricing to projected demand (2040) shows the global opportunity to be around $4.5 billion.
With few players in the space, combined with a strong drive to make North America less dependent on suppliers from less friendly jurisdictions, it is clear that IPG is exceptionally well positioned to serve a very size-able and critical need.
The goal of Imperial Mining is to become the first primary producer of scandium in the world.
About Imperial Mining Group LTD. Now Scandium Canada Group LTD.
Imperial ( now Scandium Canada) is a Canadian mineral exploration and development company focused on advancing its copper-zinc, gold and technology metals properties in Québec. Imperial is publicly listed on the TSX Venture Exchange as “IPG” and is led by an experienced team of mineral exploration and development professionals with a strong track record of mineral deposit discovery in numerous metal commodities.
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